Home delistings jump as more sellers wait out market

Plus: FHA seeks input on buy now, pay later lending

July 09, 2025

Hi, and welcome back to Mortgage Nuggets. Today’s newsletter is 627 words, a 2.5-minute read. Let’s dive in…

Disclaimer: Average mortgage rates as of July 08, 2025. © MND Daily Rate Index.

1. FHA seeks input on buy now, pay later lending

The FHA is seeking public input on the impact of buy now, pay later (BNPL) loans on housing affordability and mortgage risk, with comments due by Aug. 25.

BNPL use surged during the pandemic, especially among younger and underserved consumers, but these debts often go unreported in mortgage underwriting.

HUD cites CFPB data showing BNPL’s growing use and relatively low default rate, suggesting it could be a viable short-term credit tool — but warns it may still strain consumers’ ability to cover housing costs.

FHA policies currently exclude most BNPL debt. The move aligns with growing calls for transparency, as FICO plans to include BNPL data in credit scores by late 2025.

2. Home delistings jump as more sellers wait out market

Research published Tuesday says delistings are up 35 percent from the same period in 2024. Thirteen homes were delisted in May for every 100 homes hitting the market, according to Realtor’com.

The number marks a rise from the 10 homes delisted in the spring of last year and 2023, and from six property delistings in 2022.

“Unlike past housing cycles where falling prices pressured underwater homeowners to sell, today’s homeowners benefit from record-high levels of home equity, so they have the flexibility to wait it out, This allows many sellers to withdraw their homes from the market if their asking price isn’t met” said Jake Krimmel, Realtor.com senior economist.

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3. More Nuggets

🏘️ Fannie, Freddie ordered to accept new VantageScore 4.0 credit score. (PRNewswire)

🚼 This map shows the counties with the highest—and lowest—share of homeowners born in-state. (ResiClub)

📝 HUD proposes ending Green Mortgage Insurance Premium Reduction. (MultifamilyDive)

💼 Fairway Independent Mortgage rebrands itself with a new name. (PRNewswire)

4. Housing market continues to become more buyer-friendly

National active listings are on the rise (+28.9% between June 2024 and June 2025). This indicates that homebuyers have gained some leverage in many parts of the country over the past year.

One-year change in active housing inventory for sale: Shift between June 2024 and June 2025

5. Homebuyers react to dip in rates, applications jump

A brief drop in interest rates caused a strong bump in mortgage demand. Total mortgage application volume jumped 9.4% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

  • Applications to refinance a home loan rose 9% for the week and were 56% higher than the same week one year ago.

  • Applications for a mortgage to purchase a home also rose 9% for the week and were 25% higher than the same week one year ago.

  • The average interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, decreased to 6.77% from 6.79%.

“Homebuyer demand is being fueled by increasing housing inventory and moderating home-price growth,” said Joel Kan, vice president and deputy chief economist at the MBA. “The average loan size on a purchase application, at $432,600, was at its lowest since January 2025.”

P.S. 😂 sits up

☀️ You’re all caught up. See you on Monday!

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